Latest news and stories about withholding tax in Portugal for expats and residents.
A table published mid‑week reduces the rates, putting more money into workers' bank accounts each month for those who do not receive pay rises in 2026.
The new withholding tax tables have already come into effect. Paulo Ribeiro Pinto, the Economics editor at Negócios, explains what changes.
Home News Income taxes in Portugal to be reduced Income taxes in Portugal to be reduced To reflect the new reduction in income tax at the start of 2026, the government will need to update the withholding tax tables applied to employees and pensioners.
The 2026 State Budget (OE2026) introduces a reduction in IRS (personal income tax), resulting in lower monthly withholding taxes taken from wages and immediate financial relief for taxpayers.
